The oil business has never been as interesting as it is today, as the 21st century brings new advances in technology, sustainability, and applications of specialty oil.
We’re watching several trends, including:
- Immersion cooling oil in high-performance computing and electric vehicles
- Agricultural applications of natural gas-to-liquid oils (isoparaffins)
- Growing demand for recycled and re-refined oil
- Custom polymers made with specialty process oils for the medical industry
- Bio-based specialty oil for thermoplastic elastomers (TPEs)
Multiple industries are driving the development of new specialty oils to support innovation. These are some of the trends to watch over the next decade.
Suzanne Kingsbury, Director of Quality
1. Specialty Oil for Immersion Cooling in Data Centers and Electric Vehicles
The rapid increase in global data usage, projected to reach 180 zettabytes by 2025, is driven by advances in data-driven technology and the growing number of internet users.
This surge in data has heightened the demand for efficient cooling solutions, as traditional air cooling methods struggle to keep up with the heat generated by powerful servers in data centers.
Immersion cooling oils, developed through gas-to-liquid (GTL) technology, offer a more efficient, simple, and sustainable alternative.
These oils are particularly beneficial for data centers, cryptocurrency mining, and electric vehicles, providing superior cooling, reduced energy consumption, and enhanced performance.
2. Increased Natural Gas-to-Liquid (GTL) Adoption in Agriculture
Modern farmers face numerous challenges, from pest control to grain silo safety. Shell GTL oils, derived from natural gas-to-liquid technology, offer versatile solutions for these issues.
These high-purity, non-toxic oils are used as carrier oils for pesticides, reducing pesticide use by up to 50% while ensuring even crop coverage and low phytotoxicity. Shell GTL also helps control grain dust in silos, preventing explosions and maintaining safety, and prevents clumping in animal feed.
Compared to paraffinic spray oils like Renoil PSO 70, Shell GTL is biodegradable and ideal for reducing pesticide content, while Renoil PSO 70 is OMRI Listed® and approved for organic farming applications.
3. Sustainable Specialty Oils: Recycled and Re-Refined Oil
Recycled and re-refined oils are becoming increasingly vital in industries like tire production and textiles, with the market projected to grow from $73 billion in 2023 to over $100 billion by 2029.
The shift towards recycled, re-refined oil is driven by its environmental benefits, such as reduced carbon footprints and minimizing waste, which align with the growing emphasis on sustainability.
Additionally, using purified recycled oil can enhance a company’s public image and boost consumer trust. Despite concerns about quality, re-refined oil can be as pure as virgin oil, making it easy for companies to integrate without altering their processes.
4. Advancing Medicine with Custom Polymers
Specialized custom polymers are being designed by companies like Star Thermoplastics, a Hexpol TPE Company, for life-changing medical applications.
For example, the company collaborated with a leading wearable medical device company to develop a self-monitoring device for diabetics that auto-injects medication.
The device required a puncture-resistant needle housing, which the company provided with a custom TPE designed to exact specifications.
Given the stringent safety requirements for medical applications, Star Thermoplastics used only highly pure, medical-grade extender oils that meet multiple certification standards, ensuring safe human contact.
5. Bio-Based Specialty Oil for More Sustainable TPEs
Demand for bio-based oil has surged, driven by the growing market for bio-based thermoplastic elastomers (TPEs). Valued at $513 million in 2023, this market is projected to reach $1.9 billion by 2033, with a 14% CAGR (compound annual growth rate).
TPE manufacturers are exploring renewable raw materials like bio-based process oil to stay competitive. Bio-based TPEs combine the sustainability of organic material with the stability of synthetic materials.
For example, a process oil combination of vegetable oil with traditional paraffinic oil helps promote a more sustainable TPE product while maintaining key attributes (low volatility, softness, etc.). Supply security and the right formulations are crucial for success.
Renkert Oil Has Your Specialty Oil Needs Covered
Since we got started in 1987, we have always strived to be more than suppliers of today’s base oil products. We do that, of course. But we’re also specialty oil consultants passionate about helping our customers stay competitive and grow their businesses.
We do it by:
- Watching industry trends and filling niche needs. The above are just a few examples of products we have sourced or developed to help our customers serve their changing markets.
- Providing outstanding supply security. Our contract customers know that they can rely on Renkert Oil to keep their high-priority products stocked for a consistent supply.
- Improving efficiencies. We routinely assess and adjust our processes to increase our value to customers, such as rapid shipping of packaged products, vendor-managed inventory, and more.
- Superior logistics. In addition to redundant facilities across the U.S. and one in Europe, we maintain diverse supply lines by rail, truck, barge, and more to ensure we can always deliver on time and on budget.
To learn more, reach out and schedule a consultation with Renkert Oil. Our team will be delighted to partner with you today and throughout the market changes and developments of tomorrow.